(Yicai Global) Feb. 10 -- Shares of Yum China Holdings, the operator of the Kentucky Fried Chicken, Pizza Hut, and Taco Bell chains in China, bounced back following a drop yesterday after its adjusted net income fell 93 percent in the final quarter of 2021 from a year earlier.

Yum China [HKG: 9987] ended 8.5 percent higher today at CNY377 (USD48.38). The stock touched a record low of CNY341.20 during trading yesterday.

Adjusted net income was USD11 million in the three months ended Dec. 31 because of measures taken in China to combat Covid-19 outbreaks during the quarter, according to the Shanghai-based firm’s earnings statement released on Feb. 8. Revenue rose 1 percent to USD2.3 billion.

Waves of Covid-19 cases in the period impacted China’s entire restaurant sector as people curbed social activities. Yum China pointed out that according to government figures, the sector’s overall fourth-quarter revenues fell.

“The fourth quarter was particularly challenging with multiple widespread outbreaks and also being the seasonally smallest quarter,” said Chief Financial Officer Andy Yeung.

Net income more than tripled to USD475 million mostly due to a USD618 million non-cash gain from the re-measurement of Yum China’s previously held stake in Hangzhou KFC after it bought 28 percent of Hangzhou Catering Service Group for USD255 million last December. Total sales fell 3 percent, with same-store sales down 11 percent.

For the full year, net income was USD990 million, a 26 percent gain. Revenue jumped 19 percent to USD9.9 billion. Total sales grew 10 percent, while same-store sales slid 1 percent.

“Looking ahead, we continue to face significant uncertainties from the Covid-19 situation and other headwinds from the external environment,” said Chief Executive Joey Wat. “But with our product innovation capabilities, world-class operational excellence and agility, I am confident that we will emerge from the pandemic even stronger than before.”

Yum China’s had 11,788 stores at the end of last year, with record gross new store openings of 1,806 and net new store openings of 1,282.

“We are staying the course to reach our next milestone of 20,000 stores,” Wat added. “We will continue to apply a disciplined and systematic approach in opening new stores to ensure profitable growth of the business.”

Editor: Futura Costaglione